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CHENGDU, Aug. 26 -- Dongfeng Peugeot Citroen Automobile Company (DPCA) Ltd., a joint venture of French carmaker PSA Peugeot Citroen and Chinese automaker Dongfeng Motor Corporation, is expected to build a fourth factory in China.

The plant, with an investment of 12.3 billion yuan (2 billion U.S. dollars) and an annual capacity of 320,000 vehicles, will be based in Chengdu, capital of southwest China's Sichuan Province, according to the Sichuan provincial development and reform commission, which approved the project on Monday.

Construction will start later this year and the first car is scheduled to roll off the line late in 2016.

DPAC currently has three plants in Wuhan, capital of central China's Hubei Province, with an annual production capacity of 750,000 vehicles.

Major global car manufacturers, including Toyota, Volvo and Hyundai, have set up factories in Sichuan.